• Ms.Chaitra.S
• Dr.Madhavi.R

Behavioural finance has been growing over the last twenty years specifically because investors rarely behave according to the assumptions made in traditional financial and economic theory. Behavioural finance is an-add on theory to the paradigm of finance. In contrary to the traditional and Markowitz modern theory of decision making process, Behavioural finance theories incorporated Behavioural aspects to the investment decision making process. Behavioural biases are irrational beliefs or behaviours that can unconsciously influence our decision-making process. Research in psychology has evidenced and documented a range of decision making behaviours called biases. These biases can affect almost all types of decision making, but have particular implications in relation to financial activities. These biases are related to how investors process information to reach decisions and the preferences they exhibit in the process of investment. As defined by Shefrin (1985), bias is nothing else but the inclination toward error. Understanding the effect of behaviour biases on the investment process, investors and their advisors may be able to improve economic outcomes and attain stated financial objectives. Simply identifying behavioural biases at the right time can save client from potential financial disaster. Investors while investing incur emotional and cognitive weaknesses that lead to faulty assessment in making trades/investment decisions. Kahneman and Reipe (1998) introduced biases of decisions and judgement as cognitive illusions. They stated that as visual illusions exist, errors in intuitive reasoning cannot be ignored. Financial decisions are made under severe complexities and uncertainties that influence investors/traders to believe on intuitions. Hence, the author stated that intuitions play a very important role in decision making. The present working paper aims to identify the future scope for further research in this area

Behavioural biases, investing pattern, investing behaviour, heuristic biases, frame biases.

"Behavioural biases and its impact on investors, a literature review Authors’ details ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 1, page no.98-112, January-2024, Available :http://www.jetir.org/papers/JETIRGB06014.pdf

"Behavioural biases and its impact on investors, a literature review Authors’ details ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 1, page no. pp98-112, January-2024, Available at : http://www.jetir.org/papers/JETIRGB06014.pdf